Refi Interest Cover (ICR) is a key metric in property development finance UK used to assess refinance viability. It calculates the ratio between projected net income from a property and the anticipated interest payments on a proposed refinance loan. An ICR above one indicates the property generates sufficient income to cover interest costs, supporting lender confidence and reducing refinancing risk. This metric is crucial for SME property developers when planning exit strategies, managing debt, and structuring capital stacks. Refi ICR informs whether refinancing enhances returns or exposes the project to financial strain, integrating closely with Loan to Value (LTV) and overall development viability.
This sits beneath Refinance Viability, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Refi Debt Quantum Headroom, as both are closely related measures used to assess similar aspects of performance or risk.
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